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Xiotech HDD/SSD Combo A Price/Performance Powerhouse: Page 2 of 2

Xiotech ISE blows the socks off the competition, says Toigo, although he cautions that great technology does not succeed without great marketing. "Once articulated, their value proposition--reduced cost, reduced risk and greater operational efficiency of storage--resonates with consumers, especially today."

Toigo says he also wonders how the company can make money "if they sell bullet-proof storage at a lower price than their competitors and with a five year warranty and maintenance agreement that reflects the fact that these rigs are like Timex watches. [They take a licking and keep on ticking.] I mean, where is the after-sale revenue from service calls and replacement parts? Their response to me is always the same: sell more storage. When a customer is delighted with a product, they will keep going back to the same source for more. That's probably true."

While also giving high marks to the overall system architecture, use of SSDs and price/performance, IDC research manager Noemi Greyzdorf notes that enterprise customers often buy products based not only on the price-per-performance parameter but on other features and services. "Xiotech definitely delivers a viable option for those building out pools of storage in support of services, multitenancy, based on virtualization, but in terms of the overall competitive impact, in the enterprise, it won't be earth-shattering."

As for the company's continued success and independence, she sees it as a prime acquisition target but is unsure if there is anyone left, immediately, to make the acquisition. "With the right strategy, partners and message, Xiotech has an opportunity to continue to expand its customer base and brand awareness. If done right when it is acquired, it will be worth a lot more than it is today."

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